MercoPress. South Atlantic News Agency

Vigorous recovery of Argentine industry

Argentine industry expanded 3,2% in January compared to December while industrial
capacity dropped to 65,6% (form 66,5%) according to the latest release from the National Statistics and Census Office.

Industrial output in January was also 12% above January 2003.

The most dynamic sectors were the printing business, car manufacturing, and production of synthetic and artificial fibres with only a slight drop in tobacco.

Industrial capacity reached its highest in the oil, metal and paper industries.

The release includes a forecast for February based on expectations from the main industries CEO indicating that 55,8% estimate domestic demand will remain unchanged while 31,1% expect an expansion. Regarding exports, 50% forecast no major changes in February but 32,8% are optimistic about greater sales.

As to industrial equipment imports, 68,4% believe there won't be changes and 22,8% expect an expansion over January 2004.

The good showing of industry follows this week's announcement that the Argentine economy, after four years of contraction, expanded 8,4% in 2003. Actually December 2003 compared to December 2002 showed a 10,9% rebound.

Government and the private sector were estimating growth between 4 and 7% last year.

The strong growth should help recover some of the twenty points loss Argentina suffered during the 1998 and 2002 recession which condemned half the population below the poverty line.

In December 2001 Argentina defaulted on over 88 billion US dollars of its foreign debt.